1. The document describes a textual entailment system that uses hypothesis transformation and semantic variability rules.
2. The system uses tools like LingPipe for named entity recognition and MINIPAR for dependency parsing. It integrates resources like DIRT, WordNet, and acronym/background knowledge databases.
3. The system calculates fitness scores for hypothesis-text pairs by comparing their dependency trees based on local and extended local fitness values. It determines textual entailment based on a global threshold.